LONG-LIVED ASSETS, INCOMPLETE MARKET, AND

IVIE working papers o®er in advance the results of economic research under way in or-der to encourage a discussion process before sending them to scienti¯c journals for their ¯nal publication. * I thank P. Gottardi, A. Jimenez, and J. Sempere for their comments, and H.M. Polemarchakis for useful discussions. I gratefully acknowledge ¯nancial support from CONACYT via a C¶atedra de Excelencia at El Colegio de M¶exico, additional support from the Ivie and DGICyT project PB97-0131, and the hospitality of ColMex.